A crude storage tank at the Freeport SPR facility
US SPR takes on new role
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
The purpose and optimal size of the US Strategic Petroleum Reserve (SPR) has become the subject of debate since the Biden administration adopted an at-least implicit price band mechanism for withdrawals from and refills of the reserve in 2022. The US Department of Energy (DOE) released more than 220m bl from the SPR in 2022 to combat a 50% jump in benchmark light crude prices—to $120/bl—due to actions associated with Russia’s invasion of Ukraine in February of that year (see Fig.1). The initial 180m bl—released under IEA obligation, unlike the remainder—fetched an average price of $95/bl, suggesting an implicit top to the price band. A
Also in this section
29 April 2026
The UAE’s exit from the alliance marks a decisive step towards a world in which oil markets are shaped less by collective management and more by national strategy
29 April 2026
Trafigura’s $1b prepayment agreement confirms African resource holders’ renewed interest in oil-backed financing deals as they look to capitalise on high oil prices
29 April 2026
The UAE’s departure from the oil producers’ group was a surprise to many, but the move can be traced back to a single point five years ago
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
